Retail chain Sports Direct has reported a 12 per cent rise in sales to £711.2 million for the quarter to July 27.

The 400 store chain, controlled by Newcastle United and Rangers Retail owner Mike Ashley, said gross profits for the quarter increased 11.8 per cent to £301.2 million.

Sports Direct chief executive Dave Forsey said trading in the quarter was in line with expectations and some some stronger trading weeks helped to offset lower England replica kit sales caused by England's short appearance at the World Cup.

Quarterly sales were buoyed by the retail stores, with sports retail revenues up 16 per cent to £611.8 million and gross profits up nearly 16 per cent to £260.4 million.

However revenue from the Brands portfolio, which includes Dunlop, Slazenger, Everlast, dipped seven per cent year-on-year to £47.3 million and Premium Lifestyle sales dipped nearly nine per cent to £52.1 million, with gross profits down almost five per cent to £20.3 million.

The company recently reported a 16 per cent rise in profits to £239.5 million for the financial year to April 27 on underlying earnings of £331 million, and the group said today it expects earnings will grow to £360 million in the current financial year.

Sports Direct, which has more than 30 stores in Scotland, said its performance has gone from "strength to strength" as a result of a bonus scheme launched in September 2009, with the current four-year incentive scheme – available to around 3,000 staff – would pay out on average £80,000 at current share prices.

The share scheme last year awarded shares worth £68,000 on average.

Last year it was reported 90 per cent of Sports Direct employees – all of its 20,000 part-time staff –are employed on zero-hour contracts with no guaranteed hours.

Forsey said: “As we highlighted at our preliminary results in July, recent trading, including the period since 27 July, has been in line with management's expectations with some stronger weeks offset by England's disappointing World Cup performance.

“Within Sports Retail we continue to focus on upgrading our store portfolio and integrating recent acquisitions, including Eybl and Sports Experts in Austria.

“Consistent with previous guidance we continue to target underlying EBITDA (before share scheme costs) of £360 million for the current period.”

Last week the Daily Record revealed Sports Direct owner Mike Ashley had bought the naming rights for Ibrox Stadium for £1 in a deal agreed with ex-Rangers chief executive Charles Green in 2012.

It later emerged Sports Direct had also taken full control of Rangers Retail, with 51 staff from its three outlets - Ibrox Stadium, Glasgow Aitport and Belfast city centre – having TUPE'd to Sports Direct payroll.

Ashley, who also owns Newcastle United Football Club, also purchased three million shares in Rangers International Football Club Plc when it made its stock market début in December 2012, giving him a 4.56 per cent stake.